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Deutsche Börse Group | 30 July 2020 |
Analyst and Investor Conference Call
30 July 2020
Q2/2020Financial results
Deutsche Börse Group | 30 July 2020 | 1
7%
Net revenue growth Q2
Net revenue growth of 7% in Q2 to €778 million mainly driven by
continued positive contribution of secular growth initiatives (+7%).
Organic operating cost development in Q2 (+8%) continued to be
mainly driven by higher investments; adjusted EBITDA increased
by 4% to €483 million and the adjusted EPS amounted to €1.57.
Strong H1 results driven by exceptionally high volatility in Q1:
Net revenue up 17% to €1.7 billion and adjusted net profit up 16%
to €676 million.
Despite strong first half year, guidance for 2020 remains unchanged
at around €1.20 billion adjusted net profit.
Next mid-term plan “Compass 2023” is scheduled to be presented at
the Investor Day on 18 November (Frankfurt & virtual).
Summary Q2/2020 results presentation
~€1.20bn
Net profit guidance 2020 (adj.)
€676m
Net profit (adj.) H1
€1.57Earnings per share (adj.) Q2
18 November
Investor Day 2020
Deutsche Börse Group | 30 July 2020 | 2
725
778
Q2/19 Q2/20
Net revenue
+7%
+5% (organic)
+7% (secular)
260300
Q2/19 Q2/20
466 483
Q2/19 Q2/20
Operating cost
+15%
+ 8% (organic)
EBITDA
+4%
+4% (organic)
Net profit
→ 0%
+3% (organic)
Group financialsQ2/2020 | €m
288 288
Q2/19 Q2/20
Note: Adjusted for exceptional items. Organic growth incl. Axioma (Qontigo), Ausmaq (IFS) and Börse Berlin (Xetra) like-for-like.
Exceptional cost
items€42m
Depreciation€62m
+14%
Net interest
income€50m
-24%
Note
Financial result €-18m
Tax rate 26%
EPS (adj.)€1.57
-1%
Net interest €50m
income −24%
Exceptional cost€42m
items
Depreciation €62m
Financial result −€18m
Tax rate 26%
EPS (adj.)€1.57
−1%
Deutsche Börse Group | 30 July 2020 |
Eurex (financial derivatives)Q2/2020 | €m
OTC notional
cleared (incl. compr.)€9.2tr
+14%
Index
derivatives381m
+58%
Equity
derivatives86m
-17%
3
Fixed income
derivatives161m
+10%
Total
derivativesm
+28%
OTC notional
outstanding (avg.)€17.6tr
+49%118
131
5445
15 1214
152615
1529
29
Equity10
Q2/19 Q2/20
OTC clearing3
Other1
Eurex data
Margin fees2
Fixed income
Index
255272
185192
Q2/19 Q2/20
Net revenue
+6%
EBITDA
+4%
Business activity
Note: EBITDA adjusted for exceptional items.
1) Including net revenue from connectivity and member fees.
2) Including NII and securities collateral fee.
3) Including margin fees on OTC clearing related collateral.
Total 436m
derivatives −16%
Index 248m
derivatives +6%
Fixed income 117m
derivatives −18%
Equity 69m
derivatives −51%
OTC notional €18.6tr
outstanding (avg.) +37%
OTC notional €9.1tr
cleared (incl. compr.) +28%
Deutsche Börse Group | 30 July 2020 |
EEX (commodities)Q2/2020 | €m
4
19 17
25 29
1110
17 15
71
Q2/20Q2/19
Gas
Other1
Power derivatives
Power spot
71
35 34
Q2/19 Q2/20
Net revenue
→ 0%
EBITDA
−3%
Power
derivatives1,804 TWh
+26%
Gas761 TWh
+30%
Power
spot161 TWh
+5%
Business activity
Note: EBITDA adjusted for exceptional items.
1) Including net revenue from connectivity, member fees and emission allowances.
Power 153 TWh
spot +2%
Power 1,660 TWh
derivatives +20%
Gas 591 TWh
−13%
Deutsche Börse Group | 30 July 2020 |
360T (foreign exchange)Q2/2020 | €m
5
1819
4
4
Q2/19
24
Q2/20
Trading
Other1
22
1010
Q2/19 Q2/20
Net revenue
+8%
EBITDA
+7%
Average daily
volumes (ADV)€95bn
+25%
Business activity
Note: EBITDA adjusted for exceptional items.
1) Including net revenue from connectivity and member fees.
Average daily €81bn
volumes (ADV) 0%
Deutsche Börse Group | 30 July 2020 |
Xetra (cash equities)Q2/2020 | €m
6
38
54
5
26
2610
11
Trading & clearing
Q2/19
Listing4
Xetra data
79
Other1
Q2/20
94
48
60
Q2/19 Q2/20
Net revenue
+19%
+18% (organic)
EBITDA
+25%
+24% (organic)
Oder book volume2
ETF, ETC, ETN€78bn
+130%
Oder book volume2
Equities€551bn
+64%
Business activity
Note: EBITDA adjusted for exceptional items. Organic growth incl. Börse Berlin (Q4/19) like-for-like.
1) Including net revenue from connectivity.
2) Xetra, Börse Frankfurt and Tradegate.
Order book volume2 €470bn
Equities +35%
Order book volume2 €61bn
ETF, ETC, ETN +73%
Deutsche Börse Group | 30 July 2020 |
Clearstream (post-trading)Q2/2020 | €m
7
98107
20
30
5125
1920
2125
Net interest income
Other1
6
Collateral management
Third party services6
Q2/19 Q2/20
Settlement
213
Custody
215
141134
Q2/19 Q2/20
Net revenue
−1%
EBITDA
−5%
Settlement
transactions (ICSD)18.3m
+37%
Cash balances
total volume€19.4bn
+27%
Assets under
custody€11.8tr
+4%
Business activity
t/o Cash balances
US-Dollar€10.1bn
+35%
Note: EBITDA adjusted for exceptional items.
1) Including net revenue from connectivity, account services and reporting.
Collaterals
outstanding€444bn
+13%
Assets under €11.8tr
custody +3%
Settlement 18.5m
transactions (ICSD) +33%
Cash balances €15.8bn
total volume −1%
t/o US-Dollar€7.7bn
−3%
Collateral €563bn
outstandings +25%
Deutsche Börse Group | 30 July 2020 |
IFS (investment fund services)Q2/2020 | €m
8
1820
13
16
13
14
51
Q2/19 Q2/20
Custody
Other1
Settlement
44
21
26
Q2/19 Q2/20
Net revenue
+17%
+12% (organic)
EBITDA
+21%
+18% (organic)
Settlement
transactions10.8m
+69%
Assets under
custody€2.7tr
+12%
Business activity
Note: EBITDA adjusted for exceptional items. Organic growth incl. Ausmaq (Q3/19) like-for-like.
1) Including net revenue from connectivity, order routing, Clearstream Fund Desk and Ausmaq.
Assets under €2.5tr
custody +2%
Settlement 9.5m
transactions +42%
Deutsche Börse Group | 30 July 2020 |
Traded
contracts354m
+60%
Qontigo (index and analytics business)Q2/2020 | €m
9
10 8
87
2125
14 Analytics
53
Q2/19
ETF
Q2/20
39
Other licences
Exchange licences
26 28
Q2/19 Q2/20
Net revenue
+38%
+ 1% (organic)
EBITDA
+ 5%
+ 11% (organic)
ETF AuM
STOXX€67bn
-7%
Business activity
Note: EBITDA adjusted for exceptional items. Organic growth incl. Axioma (Q3/19) like-for-like.
ETF assets under €85bn
management −11%
Exchange licences 235m
traded contracts +8%
Deutsche Börse Group | 30 July 2020 | 10
1,446
1,692
H1/19 H1/20
Net revenue
+17%
+14% (organic)
+ 7% (secular)
509591
H1/19 H1/20
941
1,103
H1/19 H1/20
Operating cost
+16%
+ 9% (organic)
EBITDA
+17%
+17% (organic)
Net profit
+16%
+19% (organic)
Group financialsH1/2020 | €m
580676
H1/20H1/19
Note: Adjusted for exceptional items. Organic growth incl. Axioma (Qontigo), Ausmaq (IFS) and Börse Berlin (Xetra) like-for-like.
Exceptional cost
items€42m
Depreciation€62m
+14%
Net interest
income€50m
-24%
Note
Financial result €-18m
Tax rate 26%
EPS (adj.)€1.57
-1%
Net interest €50m
income -24%
Exceptional cost€42m
items
Depreciation€62m
+14%
Financial result €-18m
Tax rate 26%
EPS (adj.)€1.57
-1%
Net interest €118m
income −8%
Exceptional cost€70m
items
Depreciation €124m
Financial result −€35m
Tax rate 26%
EPS (adj.)€3.68
+16%
Deutsche Börse Group | 30 July 2020 | 11
Consolidation
+3%
Secular growth
+7%
Cyclical growth
+7%
Secular growth trend remained intactH1/2020 | €m
Consolidation effects mainly driven
by Qontigo (Axioma) and a small
contribution from IFS (Ausmaq).
36
107
103
H1/20H1/19
1,446
1,692
+17%
All segments with positive secular
growth contribution, with good
progress at Eurex, IFS, Qontigo and
360T.
Cyclical growth mainly driven by
exceptionally high volatility in Q1
due to the Corona situation.
Note
Note: Numbers may not add up due to rounding.
Deutsche Börse Group | 30 July 2020 | 12
Consolidation
+7%
Investments
+7%
Net inflation
→ 0%
Operating cost developmentH1/2020 | €m
34
38
11
591
0
H1/19 H1/20
509
+9% (organic)Consolidation effects mainly driven
by Qontigo (Axioma) and a small
contribution from IFS (Ausmaq).
Higher investments in growth and
technology, increase in personnel,
as well as additional operating
costs due to Corona situation.
Inflationary pressures off-set by
increase of operating efficiency.
Note
Note: Numbers may not add up due to rounding. Adjusted for exceptional items.
Variable-/ share
based comp.
2%
Increase of variable-/ share based
compensation mainly due to share
price performance.
Deutsche Börse Group | 30 July 2020 |
857
1,003
1,106
FY/17 FY/18 FY/19 FY/20E
~1.20bn+17%
+10%
13
OutlookFY/2020 | €m
Mid-term target
+10-15% CAGRDespite strong H1/2020, guidance
for 2020 remains unchanged.
Continued secular net revenue
growth of at least 5% and
around €1.20 billion
adjusted net profit.
Note: Adjusted for exceptional items.
NoteNet profit guidance
For FY/2020 Deutsche Börse
expects:
Deutsche Börse Group | 30 July 2020 | 14
Appendix
Deutsche Börse Group | 30 July 2020 | 15
Income statement – group level reported
(in €m)Quarter ended
30 June 2020
Quarter ended
30 June 2019
Sales revenue 837.8 747.7
Net interest income from banking business 50.4 66.7
Other operating income 4.7 3.0
Total revenue 892.9 817.4
Volume-related costs -115.4 -92.6
Net revenue 777.5 724.8
Staff costs -220.0 -186.1
Other operating expenses -122.6 -105.4
Operating costs -342.6 -291.5
Net income from strategic investments 5.8 0.7
Earnings before interest, tax, depreciation and amortization (EBITDA) 440.7 434.0
Depreciation, amortization and impairment losses -62.6 -55.4
Earnings before interest and tax (EBIT) 378.1 378.6
Financial result -18.4 -11.6
Earnings before tax (EBT) 359.7 367.0
Income tax expense and other tax -93.3 -93.0
Net profit for the period 266.4 274.0
thereof attributable to Deutsche Börse shareholders 256.7 266.9
thereof attributable to non-controlling interests 9.7 7.1
Earnings per share (basic) (€) 1.40 1.46
Deutsche Börse Group | 30 July 2020 | 16
Income statement – group level adjusted
(in €m)Quarter ended
30 June 2020
Quarter ended
30 June 2019
Sales revenue 837.8 747.7
Net interest income from banking business 50.4 66.7
Other operating income 4.7 3.0
Total revenue 892.9 817.4
Volume-related costs -115.4 -92.6
Net revenue 777.5 724.8
Staff costs -199.1 -171.7
Other operating expenses -101.1 -88.3
Operating costs -300.2 -260.0
Net income from strategic investments 5.8 0.7
Earnings before interest, tax, depreciation and amortization (EBITDA) 483.1 465.5
Depreciation, amortization and impairment losses -62.3 -54.7
Earnings before interest and tax (EBIT) 420.8 410.8
Financial result -18.4 -11.6
Earnings before tax (EBT) 402.4 399.2
Income tax expense and other tax -104.6 -103.7
Net profit for the period 297.8 295.5
thereof attributable to Deutsche Börse shareholders 288.1 288.4
thereof attributable to non-controlling interests 9.7 7.1
Earnings per share (basic) (€) 1.57 1.58
Deutsche Börse Group | 30 July 2020 | 17
Income statement – segmental level I/II
Eurex EEX 360T Xetra
(financial derivatives) (commodities) (foreign exchange) (cash equities)
(in €m) Q2/20 Q2/19 Q2/20 Q2/19 Q2/20 Q2/19 Q2/20 Q2/19
Net revenue 271.5 255.3 71.2 71.3 23.6 21.8 94.4 79.3
Staff costs adj. -49.8 -43.2 -22.5 -20.9 -10.0 -8.6 -23.3 -21.4
Other operating expenses adj. -34.2 -27.2 -14.9 -15.5 -3.4 -3.7 -12.1 -11.2
Operating costs adj. -84.0 -70.4 -37.4 -36.4 -13.4 -12.3 -35.4 -32.6
Operating costs reported -92.3 -74.8 -44.2 -39.0 -13.1 -16.9 -39.5 -34.7
Result from equity investments 4.9 0.3 -0.1 -0.1 0.0 0.0 1.2 1.3
EBITDA adj. 192.4 185.2 33.7 34.8 10.2 9.5 60.2 48.0
Deutsche Börse Group | 30 July 2020 | 18
Income statement – segmental level II/II
Clearstream IFS Qontigo
(post-trading) (investment fund services) (index and analytics business)
(in €m) Q2/20 Q2/19 Q2/20 Q2/19 Q2/20 Q2/19
Net revenue 212.6 214.8 50.8 43.6 53.4 38.7
Staff costs adj. -55.0 -53.5 -17.6 -16.3 -20.9 -7.8
Other operating expenses adj. -23.8 -19.8 -7.7 -6.2 -5.0 -4.7
Operating costs adj. -78.8 -73.3 -25.3 -22.5 -25.9 -12.5
Operating costs reported -92.5 -82.8 -32.0 -26.6 -29.0 -16.7
Result from equity investments -0.2 -0.8 0.0 0.0 0.0 0.0
EBITDA adj. 133.6 140.7 25.5 21.1 27.5 26.2
Deutsche Börse Group | 30 July 2020 | 19
Financial calendar and contact details
Deutsche Börse AG
Investor Relations
Mergenthalerallee 61
65760 Eschborn
Germany
Phone: +49 69 211 11670
Fax: +49 69 211 14608
E−Mail: [email protected]
www.deutsche-boerse.com/ir_e
Financial calendar
26 Aug 2020 Virtual US Roadshow organised by Commerzbank
01 Sep 2020 Virtual Group Meeting for US investors organised by Morgan Stanley
02 Sep 2020 Virtual Group Meeting for European investors organised by JP Morgan
09 Sep 2020 Virtual Group Meeting for German investors organised by Metzler
14 Sep 2020 Barclays Global Financials New York Conference (virtual)
21 Sep 2020 Goldman Sachs and Berenberg German Corporate Conference (virtual)
22 Sep 2020 BofA Global Research 25th Annual Financials CEO Conference (virtual)
23 Sep 2020 Baader Investment Conference (virtual)
30 Sep 2020 Morningstar’s Management Behind the Moat Conference (virtual)
28 Oct 2020 Publication quarterly statement Q3/2020
29 Oct 2020 Analyst and investor conference call Q3/2020
09 Nov 2020 UBS European Virtual Conference 2020 (virtual)
11 Nov 2020
18 Nov 2020 Investor Day 2020 (Frankfurt & virtual)
Deutsche Börse Group | 30 July 2020 |
Disclaimer
Cautionary note with regard to forward-looking statements: This document contains forward-looking statements and statements of future
expectations that reflect management's current views and assumptions with respect to future events. Such statements are subject to known and
unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied and that are
beyond Deutsche Börse AG's ability to control or estimate precisely. In addition to statements which are forward-looking by reason of context, the words
'may, will, should, expects, plans, intends, anticipates, believes, estimates, predicts, potential, or continue' and similar expressions identify forward-
looking statements. Actual results, performance or events may differ materially from those statements due to, without limitation, (i) general economic
conditions, (ii) future performance of financial markets, (iii) interest rate levels (iv) currency exchange rates (v) the behaviour of other market participants
(vi) general competitive factors (vii) changes in laws and regulations (viii) changes in the policies of central banks, governmental regulators and/or
(foreign) governments (ix) the ability to successfully integrate acquired and merged businesses and achieve anticipated synergies (x) reorganization
measures, in each case on a local, national, regional and/or global basis. Deutsche Börse AG does not assume any obligation and does not intend to
update any forward-looking statements to reflect events or circumstances after the date of these materials.
No obligation to update information: Deutsche Börse AG does not assume any obligation and does not intend to update any information contained
herein.
No investment advice: This presentation is for information only and shall not constitute investment advice. It is not intended for solicitation purposes but
only for use as general information.
All descriptions, examples and calculations contained in this presentation are for illustrative purposes only.
© Deutsche Börse AG 2020. All rights reserved.